Spatial Discontinuity for the Impact Assessment of the EU Regional Policy: The Case of Italian Objective 1 Regions

23 Pages Posted: 13 Jan 2017

Date Written: January 2017

Abstract

The economic impact of the Regional Policy of the European Union is still controversial. This paper exploits administrative boundaries as spatial discontinuity to estimate the causal effect of this policy on the Italian Objective 1 regions’ employment. The analysis, developed both in a border strategy framework (municipalities contiguous to the policy‐change boundary) and with more traditional RDD models balanced by spatial forcing variables (centroids’ distance and coordinates), shows that the EU Regional Policy produced a positive impact on employment levels, without any displacement of economic activities away from nontreated regions and a concentration of the impact in key economic sectors.

Suggested Citation

Giua, Mara, Spatial Discontinuity for the Impact Assessment of the EU Regional Policy: The Case of Italian Objective 1 Regions (January 2017). Journal of Regional Science, Vol. 57, Issue 1, pp. 109-131, 2017, Available at SSRN: https://ssrn.com/abstract=2898513 or http://dx.doi.org/10.1111/jors.12300

Mara Giua (Contact Author)

University of Rome III ( email )

Via Ostiense, 159
Rome, RM 00145
Italy

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